India’s cumulative ethanol receipts reached 987 crore litres by the end of September 2026 under Ethanol Supply Year (ESY) 2025–26, with grain-based feedstocks accounting for more than 71% of total supplies, according to data released by the All India Distillers’ Association (AIDA).
Oil marketing companies (OMCs) received 987 crore litres against a contracted allocation of 1,197 crore litres for the November 2025–October 2026 supply year, representing an overall fulfilment rate of 82.5%.
Grain-based feedstocks supplied 705 crore litres, or 71.4% of total receipts, against an allocation of 908 crore litres. Sugar-based feedstocks contributed the remaining 282 crore litres, meeting 97.6% of their allocated volume of 289 crore litres.
The figures highlight the growing contribution of grain-based ethanol to India’s fuel supply programme, while sugarcane-derived feedstocks continue to deliver a high proportion of their contracted volumes.
Maize emerges as the largest ethanol feedstock
Maize was the largest individual contributor to ethanol receipts, supplying 413 crore litres by the end of September. This represented more than 41% of total ethanol receipts, against an allocation of 614 crore litres.
Combined, these sources supplied 705 crore litres of grain-based ethanol. The figures underline the role of multiple agricultural feedstocks in meeting contracted demand from OMCs.
Maize’s position as the largest individual contributor also makes its availability, pricing and competing uses important considerations for the ethanol supply chain.
Sugar-based ethanol achieves 97.6% fulfilment
Sugar-based feedstocks supplied 282 crore litres against an allocation of 289 crore litres, achieving a fulfilment rate of 97.6%.
B-heavy and C-heavy molasses deliveries exceeded their respective allocations, while sugarcane juice receipts remained below the contracted volume. Collectively, sugar-based sources came close to meeting their total allocation.
The difference between grain- and sugar-based fulfilment rates indicates that the two feedstock groups were delivering against their contracted volumes at different rates during the reporting period.
AIDA calls for policy continuity and wider ethanol use
Bharati Balaji, deputy director general of AIDA, said a robust, multi-feedstock supply network was important for long-term energy security.
She also highlighted the need for policy continuity and additional avenues for ethanol utilisation as production and supply infrastructure expands. These include flex-fuel vehicles (FFVs), sustainable aviation fuel (SAF) and compressed biogas (CBG), which she said could help sustain investment and support agricultural value chains.
These applications have different technical requirements. Ethanol can be used in suitable transport-fuel blends and as a potential feedstock for certain advanced fuel pathways, while CBG is a distinct gaseous biofuel produced through processes such as anaerobic digestion. Their development would require appropriate technologies, infrastructure and commercial frameworks.
Bioenergy Business Analysis
India’s September-end ethanol receipts reveal two important features of the country’s biofuel supply chain: the growing weight of grain-based feedstocks and the high fulfilment rate achieved by sugar-based sources.
At 413 crore litres, maize contributed more ethanol than any other individual feedstock. Surplus FCI rice and damaged foodgrains further expanded the grain-based supply pool. This diversified sourcing can give producers additional routes to meet OMC demand, but it also makes feedstock availability, procurement costs and agricultural-market conditions important factors to monitor.
The contrast in fulfilment rates is equally significant. Grain-based supplies met 77.6% of their allocation, compared with 97.6% for sugar-based feedstocks. The figures describe deliveries against contracted volumes; on their own, they do not establish why the gap occurred or whether it reflects production capacity, logistics, pricing or other constraints.
